I was reading an article in the Wall Street Journal about how banks would increase their fees for accounts that were previously free. Free checking may soon be the way of the dinosaur, because banks were looking for a way to raise money after passing the CARD law last year. Commercial banks are trying to raise money because the CARD Act is expected to reduce bank revenues by billions of dollars in income from overdrafts. In response, banks are coming up with new ways to take more of your savings.
Here are some strategies that banks are considering taking over:
Never check for free again
There was a time when banks were competing with your company by offering great benefits such as free checking. Well, no more! Many banks eliminate completely free checking accounts. Customers must pay service fees that are known as monthly maintenance fees for the privilege of having a checking account. Monthly service costs range from $ 9, 95 to $ 15. This is a big hit for bank customers that can ultimately cost you $ 180 a year.
Increased minimum balances
Banks increase the minimum amount that you must keep in your account to prevent service costs. Most banks did not have a minimum balance sheet requirement to avoid service costs. Banks are now considering imposing minimum required balances on all checking accounts. These amounts could range from $ 2500 to $ 10,000. It is better to keep your balance high in the future if you want to avoid bank charges.
Increased use of banking services
Banks give customers a way to avoid service costs. The “sensible” solution is to use more banking products. Here are some ways to bypass the increased service costs:
- Use the cash machine and Olya or Muromine bank more often.
- Use your bank credit cards more often.
- Open a broker account with the bank.
- Request loan products (at home, by car, persona or Muromijk).
Most of these options will ultimately cost customers more money in the long run or put them deeper in debt. That is not exactly the kind of help that you would expect from a financial institution.
Add surcharges to products that used to be free
Has your bank previously given you free checks with your checking account? What about monthly account statements, were they also free? Banks will now impose check fees for every time you have to re-order the checks. There are also shipping fees for paper money of $ 2 and $ 3 dollars. Some banks even charge if you go to the bank more than twice a month. It’s only a matter of times before banks start charging you to get a debit card.
If your bank engages in these shameful practices, you should definitely consider the benefits of a credit union. Also look at the possibility to become a member of an Olympia or Muromine bank such as Capital One 360.
What is your opinion about these newly proposed bank charges? Do you think that banks are entitled to charge these news funds? Why or why not?
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